Gold and Silver Grind Higher After Inflation Comment

On Tuesday, gold (NYSEARCA:GLD) futures for April delivery, the most active contract, gained $13.70 to close at $1,591.70 per ounce, while silver (NYSEARCA:SLV) futures for May increased 32 cents to finish at $29.17.

Both precious metals climbed higher as European Central Bank Governing Council member and Deutsche Bundesbank President Jens Weidmann reminded investors that the euro crisis is not over.

In a press release along with the Bundesbank’s annual results, he also made the case that deflation is still a risk, which hints that central bank intervention is here to stay for awhile. Weidmann explains, “In the short term, we in the euro area have, if anything, declining inflation risks.”